I personally think that increased home sales is a good thing for long-term values in Salt Lake County and adjoining areas. As homes sell the values will again start to inch up. At least as soon as we get rid of the REO’s (Real Estate Owned by banks).
I also agree with Joshua Stern of Keller Williams – right now we are seeing the perfect buyer situation in the balance of low interest rates and lower prices of homes. Prices could go lower, and interest rates could hold at current levels for a few more months, but I wouldn’t count on either.
Most economists agree that mortgage rates simply cannot remain this low over the long term and that as the economy improves, those rates will drift upward. “With rates this low, you may not get a better deal by waiting for prices to bottom,” said Joshua Stern, an agent with Keller Williams in Salt Lake City.